When keeping fit, it’s generally accepted that Personal Training gets results.
Why? A trainer will focus on:
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Achieving your goals to the best of your ability
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Accelerating your progress
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Educating and mentoring you along the way
Seeking advice from a Financial Planner is no different.
Having someone guide your journey into retirement removes the stress of trying to understand all of the rules and regulations….and it also gets the best results!
Why super can be important
Tax benefits available from super can impact on how long your money will last in retirement. These benefits mean that money invested in super can last many years longer for you in retirement than if it was invested in the same way, outside super.
How much super is enough?
Working out how much money you’ll need to access in retirement is a personal decision. Not only is the amount of money you need dependent upon your own lifestyle choices, you may have a range of income options in retirement which can supplement your super, such as part-time work or payments
from other investments. There’s plenty of retirement calculators available online – but what should you input? What risk should you take? Getting a few figures is one thing, but achieving financial confidence is another story.
Transitioning to retirement?
If you’re not quite yet ready to fully retire, but might be looking to reduce your working hours in the lead up to retirement, a pre-retirement pension might be the option you need. It allows you to convert your super into an income stream (allocated pension) but doesn’t allow you to take lump sum withdrawals until you’re fully retired. As you’ll still be working you can continue to make contributions to super (through SG and salary sacrifice) to maintain your super balance for when you permanently retire.
What is a pre-retirement pension?
A pre-retirement pension is also known as a ‘transition to retirement pension’. It has the same rules as an allocated pension, except that it is designed to supplement your income in the later years of your working life, before you retire. Accordingly, in addition to receiving a minimum amount, you are restricted to taking a maximum pension payment amount each year of 10% of your account balance as at 1 July (or the commencement of your pension).
What is an allocated pension?
An allocated pension (also known as an ‘account based’ pension) provides you with an income in your retirement. You can choose the amount of income you wish to receive each year above a minimum amount based on your age. An allocated pension is flexible because you are not limited to any maximum income amounts per year and you can make lump sum withdrawals at any time. Your allocated pension will continue to be paid to you or your nominated valid reversionary beneficiary as long as a balance is available in your account.
Call or email us for more information today – offices in Perth and Dunsborough (or we can meet on Skype!).
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